Fleetwood Australia H1 FY24 Financial Performance

Fleetwood Limited (ASX: $FWD) has announced its earnings for H1 FY24, reporting a net profit after tax (NPAT) of $3.9m and earnings before interest and tax (EBIT) of $6.3m. The Building Solutions segment returned to profitability, with the order book increasing to $100m. Community Solutions' results improved, while RV Solutions experienced reduced consumer demand and margin pressure. Fleetwood finished the half year with a strong financial position, recording a net cash of $34.1m.

Managing Director's Perspective on H1 FY24 Results

I am pleased with the progress we have made over the half and building the platform for our Company to improve earnings over time. The return to profit in Building Solutions was pleasing and a direct result of the implementation of our strategy. The business has continued to target projects aligned with its current capability and this has seen our order book stabilise. Our opportunity pipeline is at the highest level for many years, particularly in the kindergarten programs as well as social and key worker housing sectors. Despite strong interest, we are seeing decision making from State Governments slowing as they work through their internal processes in these key areas. Community Solutions had a solid half with EBIT up 83% on H1 FY23 reflecting planned shutdowns and increased activity in the Karratha market. Effort during the half focussed on preparing Searipple Village for increased levels of demand expected over the medium term. Contracted demand includes the June 2023 announcement of additional rooms booked by Rio Tinto under its accommodation agreement which is expected to generate a further $100m to $120m in revenue until the end of the contract term in April 2027. The near-term outlook for RV Solutions has stabilised with our new products and services gaining excellent acceptance in the market and orders continuing to increase. We continue to embed the Build, Transform & Grow strategy in the business with the aim to focus on quality of revenue through diversification, generating sustainable margins, increasing utilisation, and managing overheads to improve earnings. This is underpinned by new leadership capability across the business to successfully execute our strategy. Overall, the business is well positioned for the remainder of FY24. I look forward to sharing our progress with all shareholders in the period ahead.

Outlook and Financial Position

Fleetwood Limited's H1 FY24 results reflect a positive turnaround, with Building Solutions returning to profitability and the order book increasing to $100m. Community Solutions' performance improved, and RV Solutions' near-term outlook has stabilized. The company finished the half year with a strong financial position, recording a net cash of $34.1m. Fleetwood aims to focus on quality of revenue through diversification, generating sustainable margins, increasing utilization, and managing overheads to improve earnings. The company's opportunity pipeline is at the highest level for many years, particularly in the kindergarten programs as well as social and key worker housing sectors. Despite the challenges in decision making from State Governments, Fleetwood remains optimistic about its future performance for the remainder of FY24.